Popular social media platform Snapchat has reduced payouts for creators of its Tiktok-like feature, Spotlight.
Creators will now be paid millions of dollars annually, report TechCrunch.
The payout has been reduced for the second time by the company. The company paid out millions to creators each week in 2021 as opposed to $1 million every day in 2020.
The base payoff for each Spotlight will continue to be $250. Over 12,000 creators received $250 million from Snapchat in 2017.
However, the creators can earn profit in other ways including the Creator Marketplace, Sound Creator Fund, its accelerator program for black creators, Spotlight Challenges and in-app gifting, the report said.
Recently, the company had reported that its revenue grew 6 per cent year-over-year (YoY) to $1,128 million in the third quarter of 2022.
According to the company, revenue increased by 6 per cent to $1,128 million compared to the prior year. Net loss was $360 million, including restructuring charges of $155 million, compared to $72 million for the previous year.
Daily active users (DAUs) were 363 million in the third quarter, an increase of 57 million, or 19 per cent YoY. It increased sequentially and year-over-year in each of North America, Europe, and the rest of the world.